The FSA has taken action after being informed in November 2004 of Mr Sonaike's convictions for housing benefit fraud. These showed that he was not fit and proper to be authorised to provide financial services.
Margaret Cole, Director of Enforcement at the FSA, said: "The FSA must act to ensure that consumers are protected and markets operate in a fair and orderly way. We took appropriate and proportionate action towards Theophilus Sonaike in accordance with his criminal convictions. Fraud is extremely serious and an individual's honesty in such cases can affect their suitability to run a regulated firm.
"We check that firms are operating within our rules to maintain a level playing field for all. It is an offence for anyone to undertake regulated business unless they are authorised to do so and it could lead to criminal action."
Mr Sonaike was issued a First Supervisory Notice in May 2005 and a Decision Notice in October 2005. He exercised his right of appeal to the Tribunal on both occasions, however both decisions were upheld.
